As our viewers know, we have been sounding the alarm about the
deflationary process that is playing out in the world’s equity, bond and
currency markets for quite some time.Because of the activity by central banks in
major and more recently in developing countries we have described what is going
on as “The Central Bank Bubble”.

It is truly an irony that in their efforts to fight the
forces of a crushing deflationary environment, central
banks have been the direct cause of one of largest inflations of financial
assets in history.This asset inflation
even extends to collectibles such as art.As we write, equities in several major markets around the world are
trading at or near all-time highs while growth in those economies remains
anemic.In others, such as Japan,
equities are trading near the highs of recent years with the same anemic growth.On the fixed income front, sovereign yields
in the US, Japan, and most countries in the Eurozone are trading at all-time
lows.In the latter case there is an
unprecedented negative yield curve out 3-6 years for the very best credits
(France and Germany).All of this, as
many currencies are falling rapidly relative to the dollar.To paraphrase the character Marcellus from
Hamlet; something is clearly rotten in the state of the currency markets!

We strongly believe that the Currency Wars, (described in
our Cycle of Deflation as “competitive devaluation”) have begun. [More]

It's time Stephen Sondheim wrote another carnival song, and, more specifically, a sequel to the hauntingly memorable "Send in the Clowns" from his 1973 musical, A Little Night Music, which has proved so eerily prophetic in describing this year's political scene. As a glance at the crowded roster of Republican wannabe candidates for the presidency in next year's election makes clear, the powers that be in the GOP obviously have taken quite literally Sondheim's injunction that served as the title of the song, while the Democrats already have their very own barker and no shortage of mountebanks ensconced in their big tent. [More]

The list of negative factors affecting the stock market has now become so numerous that it is highly likely that a severe bear market has already started. We begin with the fact that, as measured by earnings and dividends, this is by far the most overvalued market of the past century. [More]

Financial Sanity3/11/13Dear Sirs,
Just had to say to you thank you, thank you for your wonderful financial sanity.

Comment on Cycle of Deflation2/15/13Hello from Ireland again (i've mailed a few years over the past). I still enjoy checking your excellent site every friday morning. One comment on the cycle of deflation - you have plant closing & debt defaults happening after competitive devaluation however this, to a large degree and in Ireland anyways, seems to have come first. Maybe you could explain this?
Also, I have to say that even though I think you are right and will be proven so soon enough, you tend to underestimate [having read your column for ten years now I think you underestimate by a 2-4 years] the reflationary power of Central Banks and for how long they can keep them up for. [More]

Cycle of Deflation theory1/18/13I'm sure that other regular readers of your commentary have noticed the term "beggar-thy-neighbor" showing up more and more in the press and online. It seems to validate the "cycle of deflation" theory you have posed for so long. We've been warned. Thanks.

Wonderful analysis that I have been reading for many years9/03/11I would like your permission to send a copy of your 8/25/11 market commentary to them since I agree that we are in a major credit/debt contraction of hugh scale and a good deal of the asset write-downs are ahead not behind us. irrespective of your answer I want to thank you for wonderful analysis that I have been reading for many years.

Your Message is Loud & Clear8/25/11Your weekly commentary plus the weekly postings on John Hussman's site should serve as required reading for anybody trying to follow this market.
Your message (much more concise than Dr Hussman's, I have to say)is loud & clear.